IRCON International shares surge 6.4% on ₹1,198 crore order win, up 517% in 2 years
Shares of IRCON International, a Navratna public sector enterprise and a prominent turnkey construction company in the public sector under the Ministry of Railways, surged by 6.4% in early morning trading today, reaching ₹266.90 per share.
This rise followed the company securing a significant order for Engineering, Procurement, and Construction (EPC) work.
In an exchange filing on Sunday, the company informed investors about receiving a letter of award for a contract valued at ₹1,198 crore through its joint venture with Dineshchandra R Agrawal Infracon. The contract entails the construction of the Kothavalasa-Koraput Doubling Project for a section of the Waltair Division, East Coast Railway.
Earlier in March, the company secured an order from the National Highways & Infrastructure Development Corporation Limited (NHIDCL) for the construction of the Twin Tube Unidirectional Aizawl Bypass Tunnel, along with its approaches, in Mizoram, valued at ₹630 crore under the EPC mode.
In the current year thus far, the company’s shares had surged by 50%, extending their bullish trend from the previous year, when they closed with a multibagger return of 187%.
Over the past twelve months, the shares have recorded a gain of 246%, resulting in an impressive return of 517% over just two years.
IRCON International is a railway construction company that has diversified progressively into roads, buildings, electrical substations and distribution, airport construction, commercial complexes, and metro rail works.
The company has widespread operations in several states in India and other countries (Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar, and Sri Lanka). The company has completed more than 128 projects in 25 countries across the globe and 401 projects in various states in India.
In the recent Interim Budget of 2024-2025, a record capital outlay of ₹2.55 lakh crore for railways and ₹2.78 lakh crore for roads & Highways has been allocated, marking the highest-ever investment in these sectors.
The government has announced the implementation of three major railway corridor programs under the PM Gati Shakti initiative to enhance logistics efficiency and reduce costs. Additionally, initiatives such as the promotion of urban transformation through Metro rail projects and NaMo Bharat have been announced.
These government initiatives are providing significant support to the infrastructure sector, and Ircon International is poised to benefit from them.
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